\nHousing inventory is losing momentum, with growth in total supply slowing down, new listings stalling and delistings becoming more common. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.\n<\/p>\n
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- \nThe supply of U.S. homes for sale rose 5.1% year over year during the four weeks ending November 30, the smallest increase in nearly two years.\n<\/li>\n
- \nNew listings rose just 0.9%, the smallest uptick in two months, with many homeowners opting to stay put rather than put their home on the market when demand is slow.\n<\/li>\n
- \nSome of the homes that are <\/i>listed are eventually pulled from the market without being sold. Delistings have jumped<\/a> in recent months, with many sellers unwilling to sell for a lower price.\n<\/li>\n<\/ul>\n
\nPending home sales fell 2.6% from a year earlier, the biggest decline in eight months. The typical home that does <\/i>sell sits on the market for 50 days before going under contract, about a week longer than last year.\n<\/p>\n
\nProspective buyers are backing off because even though monthly mortgage payments are down 1.2% year over year, housing costs are still high. Sale prices are up 2.2%, the biggest increase in nearly eight months, and mortgage rates are still sitting above 6%. Additionally, many Americans are hesitant to make a major purchase while the economic outlook is cloudy<\/a>.\n<\/p>\n
\n\u201cThe pool of buyers is small partly because we\u2019re entering the slow season for real estate, but it\u2019s also because houses are expensive, rates are elevated, and people are feeling cautious about their pocketbooks,\u201d said Carlos Castillo<\/a>, a Redfin Premier agent in Los Angeles<\/a>. \u201cHouse hunters may be able to find a deal because there are more sellers than buyers, but I\u2019m advising buyers to be strategic. For instance, buyers can ask for concessions and offer less than the asking price, but don\u2019t lowball too <\/i>much. Around 4% less than list price is pretty standard in the Los Angeles area right now.\u201d\n<\/p>\n
\nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.\n<\/p>\n
Leading indicators<\/b><\/p>\n